Berkshire Hathaway Chairman Warren E. Buffett Suggests Open Communications, Marketing Savvy, and a Strong Value Proposition Are Keys to Success in Today's Global Economy
Buffett's Recent Japan Trip Includes Visits to Tungaloy Corp. plant and Business Wire bureau
TOKYO--(BUSINESS WIRE)--For companies to succeed in today's global economy, they need to engage in open communications, possess marketing savvy coupled with manufacturing know-how, and offer customers a strong value proposition, noted Warren E. Buffett, chairman of Berkshire Hathaway, in remarks made during his first visit to Japan.
Buffett attended the November 21 opening ceremony of Tungaloy Corporation's new carbon tool plant in Iwaki City, Fukushima Prefecture. Tungaloy is a subsidiary of IMC, a Berkshire Hathaway company. Accompanying Buffett were Business Wire CEO Cathy Baron Tamraz and Charlotte Guyman, director of Berkshire Hathaway, where he also met with Business Wire's Tokyo staff and shared his views on a wide range of topics.
Japan's World-Class Manufacturing Capabilities
He attributed the completion of the new Tungaloy plant, coming just nine months after the catastrophic earthquake in March, to Japan's world-class manufacturing capabilities. He added that the country's reputation for value and quality are known worldwide, and is clearly evident in his hometown of Omaha.
"Japan knows how to make things," Buffett told Business Wire. "That counts. And it makes things the world wants."
Buffett noted that customers understand the value that Japanese products offer.
"Our home furnishings store in Omaha sells all kinds of Japanese products," Mr. Buffett noted. "It isn't because we're doing it because they are made in Japan, we're doing it because they are the best value we can obtain for our customers. That's not going to end."
Importance of Open, Effective Communications
Buffett used the visit to underscore the importance of companies maintaining open communications with its various stakeholders. He warned that companies that were negligent in divulging information risked being misunderstood in the marketplace, and suffering the accompanying consequences.
Coincidentally, both Business Wire and IMC were fortunate enough to become members of the Berkshire Hathaway portfolio because of the power of a simple, well-written letter. The chief executives of both companies reached out to Buffett via letters to gauge Berkshire Hathaway's interest in an acquisition. In both instances, the letters were persuasive enough to convince Buffett to do the deals.
Reflecting on the letter that led to Berkshire's acquisition of Business Wire in 2006, Buffett recalled: "It was a great letter. It shows the importance of communicating in writing. I receive hundreds of letters but there was some note of authenticity from Cathy."
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About Business Wire Japan
Business Wire Japan was founded in 2005 as a subsidiary of Business Wire
Inc., headquartered in San Francisco and New York.
Business Wire Japan maintains a full-service office in Tokyo, and has sales channel and distribution relationships throughout Asia, including China, Hong Kong, Taiwan, India, South Korea and Thailand.
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